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CODYY or BLD: Which Is the Better Value Stock Right Now?

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Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Compagnie de Saint-Gobain - Unsponsored ADR (CODYY - Free Report) and TopBuild (BLD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Compagnie de Saint-Gobain - Unsponsored ADR has a Zacks Rank of #2 (Buy), while TopBuild has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CODYY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CODYY currently has a forward P/E ratio of 15.83, while BLD has a forward P/E of 19.26. We also note that CODYY has a PEG ratio of 4.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BLD currently has a PEG ratio of 4.93.

Another notable valuation metric for CODYY is its P/B ratio of 2.2. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BLD has a P/B of 5.19.

These are just a few of the metrics contributing to CODYY's Value grade of B and BLD's Value grade of C.

CODYY stands above BLD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CODYY is the superior value option right now.


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